With interest rates on home mortgages at the lowest in decades many homeowners are looking into refinancing. While the rates may look attractive it’s not a sure thing that you will be getting a better deal through refinancing. It’s crucial to do your research first to determine if you will be better off with a new loan. At By Carrier we want you to be secure with your home mortgage so we offer some helpful tips that will make refinancing decisions easier.

Look Around

A big mistake many homeowners make when refinancing is to jump at the first offer a bank or mortgage lender makes. Even if the offer seems perfect there may be a better deal out there and if you stay patient you can compare several quotes to determine which is best for you. When shopping around consider more than just the rate. The fees and quality of service you get from lenders will vary and it’s a good idea to look at online forums and reviews as well as asking friends about their experience with specific lenders to know in advance if they are someone you will feel comfortable working with.

Beware the No Closing Cost Hook

Many mortgage lenders will advertise that they will refinance your home with no closing costs. This tactic gets many people to bite but it can be misleading. As people in the industry say, there’s no such thing as free and when you look closely at the offer you will find that in place of closing costs the lender has added fees such as upfront charges, slightly higher rates and the dreaded administrative fee. Be careful about the ads you read and always check for disclaimers, fine print and asterisks that indicate there may be hidden charges in the deal.

Get your Finances in Order

If you have lost your job, maxed out several credit cards and owe debts to banks and other institutions refinancing may not be possible. Most lenders require that your debt obligations each month be less than 28 percent of your gross monthly income. If your finances have worsened since you took out your first mortgage loan you may no longer meet the debt-to-income benchmark and loan officers will be very wary of lending to you. Before you consider refinancing, make sure you are on solid financial ground to ensure you will qualify.

For more information contact By Carrier


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